quantum computing in payments

A New Revolution Under Way Today

Quantum computing. Sounds like something out of a science
fiction film, doesn't it? Well, like many things sci-fi, it has its basis in
science - and it has the potential to revolutionize the payments industry.

While a comprehensive
understanding of quantum computing would require you to have a science degree,
there is a simple way to present its basics.

Traditional computing is based on encoding all data as binary code, i.e. a series of bits which can be either a one or a zero. Quantum computing takes this one step further, exploiting something called superposition - the ability of sub-atomic particles to be in two states at the same time. This means that a quantum bit, or a qubit, can be both a one and a zero at the same time.

In January 2019 IBM presented its first ever quantum
computer designed for commercial use. The IBM Q System One has 20 qubits and
while this makes it a powerful machine, most researches place the bar for
"quantum supremacy" at 50.

Still, IBM's development is significant
and while it has no plans to sell the device, it will allow customers to
perform quantum calculations by accessing the Q System One over the internet.

The Need for Speed

How is that useful, you
ask? Well, the more qubits a computer has at its disposal, the more
computations it can perform.

We are talking here about
an exponential increase when compared to traditional computing. Quantum
computing can literally solve problems that traditional computers were unable
to due to the increased speed of its data processing.

Even though its speed-related potential is remarkable, quantum computing has its speed limits.

And with increased computing power, security algorithms will
also improve - there is even talk of developing QC software that can replace
security algorithms as soon as vulnerabilities are detected.

Optimization is marked as another area that might benefit
from quantum computing, allowing reoptimization of portfolios within seconds
instead of weeks and better tracking of the movement of cash between ATMs and
banks.

The Road to Tomorrow

Google is already
conducting tests, with a reported 80 thousand developers involved with its
experimental QC system. True Positive Technologies have been working with
quantum computers since 2014 to optimize portfolios and run scenario
simulations when creating investment strategies. Hedge funds are showing an
increased interest in quantum computing with regards to dynamic portfolios.

And with JPMorgan and Barclays directly working with IBM on
quantum computing, it's obvious that at least some of the big players are
looking to the future. Furthermore, BCC Research's report from late 2018
projects the QC market's worth at $1.3bn by 2027.

Quantum computing won't come in full use tomorrow or next
week but with the current rate of innovation and development, it is expected to
gain momentum within the next 5 to 10 years. This might be just enough time for
the payments industry to prepare for the next revolution.